Basic question I can't find a good answer to
What does a quoted stock price refer to? The bid, the ask, or the midpoint of the spread?
If it is the price of the last trade that took place, which of these three does it best reflect?
Thanks!
What does a quoted stock price refer to? The bid, the ask, or the midpoint of the spread?
If it is the price of the last trade that took place, which of these three does it best reflect?
Thanks!
Career Resources
Okay...
The "market" for a stock is literally the meeting point of the bid and ask. Supply and demand usually forces the market to constrict such that a narrow range of trading, or spread, is the "market". Sometimes this spread is wider than at other times, however the quoted stock price always is the price at which the most recent trade was made.
You could also have googled this...
http://lmgtfy.com/?q=what+is+a+quoted+stock+price
gotcha, thanks!
When a market maker makes a market in an equity or derivative, they quote bids and asks.
So when I go to my broker and I see bids and asks quoted for the security that the market maker is making a market in, how does that relate to the bids and asks that I see from my broker?
I don't know if that question makes sense how I worded it.
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